Challenging times ahead for travel industry Revenue and Pricing Managers but optimism still remains
Published: 17 Sep 2008
With all eyes on the RM and pricing function especially during this period of economic instability, it can be difficult to ensure that your company’s RM and pricing strategies are robust enough to maintain and maximize revenues now and in the future.
According to a recent EyeforTravel survey, 69% of travel revenue managers have witnessed a greater emphasis on the RM and pricing function in their company in the last 6 months.
Rising fuel costs, the strength of the Euro and the credit crunch are all contributing to make the issue of setting the right prices, stimulating demand and managing revenue all the more important and complex.
A third of those travel revenue managers surveyed had already altered their revenue and pricing techniques due to the credit crunch whilst another third said that they plan to alter them in the next 6 months. However, for some of those surveyed the outlook was not all doom and gloom. 26.7% felt no effect of the credit crunch and did not plan to change their RM and pricing techniques in the near future.
With little information available to travel companies on best practices for RM and pricing, many travel companies are making costly mistakes. For Senior revenue managers the task is not only to maintain and maximize revenues in the current economic environment but also to steer their organization towards a more strategic revenue management function – thus also preparing their revenue management team for future revenue maximisation.
EyeforTravel’s opening keynote session at the upcoming Revenue Management & Pricing in Travel Europe 2008 conference will examine best practices in maximising revenue in the face of economic slowdown. Chris Silcock, VP Revenue Delivery and Service at Hilton International will be sharing his views along with Warren Mandelbaum, Head of Revenue Management at Whitbread hotels & restaurants (responsible for the successful UK budget hotel chain Premier Inn, Beefeater restaurants and Costa Coffee shops).
The future of revenue management with form a key part of the debates at the event with specific sessions dedicated to understanding how technology systems and strategic organisational change has influenced revenue management in the past and key insight into what the future holds. Experts from Hyatt International, Czech Airlines and Cross Country Trains (Arriva) will share their thoughts as to how revenue managers can steer their organization towards a future strategic revenue maximisation function and debate what tasks current revenue managers will be doing in 5-10 years time.
They will be joined by top RM and Pricing experts from Club Med, TUI, SAS, Steigenberger hotels, Airmiles, Sabre, Amadeus, Thomas Cook, Aer Lingus, Octopus Travel, Expedia, to discuss key topics such as forecasting, consumer-centric revenue management, strategic pricing, RM system integration, channel management and much more.
‘Much has changed since the last edition of this conference in November 2007. With many travel companies feeling the squeeze, this event is an essential forum to gain unbiased insight into best practices for managing revenue. Many of our delegates return year after to make new contacts, catch up with industry colleagues and benchmark their strategies against their competitors. This year this will be more important than ever’ said EyeforTravel’s Regional Director, Europe, Gina Baillie.
The 2 day annual conference will take place in Munich 2-3 December. Registrations for the event are now open - visit www.eyefortravel.com/rmeurope for full event information or contact gina@eyefortravel.com
Comments
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Pitkin said on 22 Sep 08:
It is good to be optimistic, but being realistic should be at the top of the agenda. Events on Wall Street and Washington in the past two weeks are going to have worldwide ramifications. I believe the travel and tourism industries should have a Plan B, just in case the current optimism turns out to be inflated.
In the past few days, the Bush administration has pumped in $700 billion in buying up the bad debts not only of Wall Street but also some foreign banks.
Now here's a radical thought: How about $700 billion for the travel and tourism industries?